Am I a first-time buyer if I owned a property abroad?

No. The HMRC definition of a first-time buyer requires that you have never owned a freehold or leasehold interest in a residential property anywhere in the world. Previous ownership abroad disqualifies you from first-time buyer stamp duty relief and most UK first-time buyer schemes.

Do first-time buyers get better mortgage rates?

Not necessarily better rates, but first-time buyers do have access to specific products designed for them, particularly at higher LTV ratios (90%–95%). Some lenders offer reduced fees or cashback incentives for first-time buyers. The best rate available will depend on your deposit size, income and credit history.

What is a First-Time Buyer? Meaning Explained

Q: How much deposit do first-time buyers need?

The minimum deposit for most mortgage products is 5% of the property price. So for a £250,000 home, you would need at least £12,500. However, a larger deposit — 10%, 15% or 20% — will give you access to more competitive interest rates because the lender's risk is lower.

A first-time buyer is a person who has never owned — either outright or with a mortgage — a freehold or leasehold interest in a residential property, anywhere in the world. This definition is used by HMRC for stamp duty relief purposes and by the government for eligibility in various homeownership schemes.

First-time buyers in England and Northern Ireland benefit from stamp duty relief on properties up to £425,000. No stamp duty is payable on the first £425,000, and the standard rate applies only to the portion above this threshold (up to a purchase price of £625,000). Above £625,000, the relief is not available. Scotland and Wales have their own equivalents (Land and Buildings Transaction Tax and Land Transaction Tax respectively).

Many government schemes are specifically designed for first-time buyers, including shared ownership and the mortgage guarantee scheme. Certain lenders also offer products tailored to first-time buyers, such as higher loan-to-value mortgages (up to 95% LTV) or reduced arrangement fees.

If you have previously owned a property — even if you no longer do — you are not considered a first-time buyer for stamp duty or scheme eligibility purposes. This includes properties owned abroad. Joint purchasers must both be first-time buyers to qualify for stamp duty relief; if one has previously owned a property, the relief does not apply to either.

Example

Gemma has been renting since leaving university and has never owned a property. She buys a flat for £300,000 as a first-time buyer. She pays no stamp duty at all, saving £2,500 compared with what a non-first-time buyer would pay. She accesses a 95% LTV mortgage product specifically designed for first-time buyers, requiring a deposit of just £15,000.

Key Points

A first-time buyer has never owned a residential property anywhere in the world
First-time buyers in England and Northern Ireland pay no stamp duty up to £425,000
Many government schemes (shared ownership, mortgage guarantee) prioritise first-time buyers
Both buyers in a joint purchase must be first-time buyers to qualify for stamp duty relief
Lenders offer specific products for first-time buyers, often at higher LTVs